Thursday, 18 December 2014
Last updated 3 min ago
Dec 23 2008 | 2:28am ET
It was only a matter of time. Fairfield Greenwich Group, the New York-based hedge fund firm with the most exposure of any investor to a suspected $50 billion Ponzi scheme, has itself been sued by investors.
FFG, which had more than $7.5 billion invested with Bernard L. Madoff Investment Securities—including all $7.3 billion of its Fairfield Sentry Fund—“failed to perform even a minimum level of due diligence regarding the activities of Madoff” will reaping “millions of dollars in fees,” according to the complaint filed on Friday in New York State Supreme Court.
The lawsuit, filed by New York law firm Lovell Stewart and Halebian, seeks class-action status, as do the other two Madoff-related lawsuits that have been filed since Bernard Madoff’s arrest on securities fraud charges two weeks ago. In addition to FFG, the suit names founding partners Walter Noel, Andres Piedrahita and Jeffrey Tucker, as well as Brian Francouer and Amit Vijayvergiya of an affiliate, FG Bermuda. Vijayvergiya is also FFG’s chief risk officer. The suit alleges breach of fiduciary duty, negligence and unjust enrichment.
Plaintiff’s attorney Christopher Lovell told Bloomberg News that the suit was filed in state court, rather than in federal court, because the state court proceedings cannot be put on hold. He said he would quickly serve the respondents with subpoenas and seek a document preservation order.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.